Economics

ECB Has Narrow Window for Rate Hikes Before Economy Too Soft

  • Economists see weakening euro-area momentum as biggest threat
  • New long-term loans are expected to be allotted in June

ECB President Mario Draghi

Photographer: Bloomberg/Bloomberg
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The European Central Bank will only have a narrow window to raise interest rates before the euro-area economy becomes too weak, according to a Bloomberg survey of economistsBloomberg Terminal.

Mario Draghi is seen lifting the deposit rate at his final meeting as president in October, but his successor will only have until spring of 2020 to tighten policy before soft economic growth requires a lengthy pause.